Dubai property sales lift Emaar's first-quarter profit
Emaar Properties’ first-quarter profit were lifted by 15 per cent from a year earlier as sales spiked for new residential properties in Dubai.
The Burj Khalifa developer said that its net profit was Dh1.38 billion in the first three months of the year, up from Dh1.2bn, as property sales began rebounding.
New residential launches in the downtown and marina areas, as well as joint venture projects under Dubai Hills Estate, Dubai Creek harbour and Emaar South, have helped catapult sales. Emaar recorded Dh6bn in sales from the first quarter, a 44 per cent growth compared to last year’s Dh4.19bn.
“We have seen an increase in property sales in Dubai, and we are on track with our construction milestones,” said Mohamed Alabbar, the chairman of Emaar.
The group completed the pile foundations for the observation tower in Dubai Creek Harbour as well as progress on various projects in Dubai Hills Estate, a city development surrounding a major golf course.
Mr Alabbar said: “Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality and leisure businesses have also recorded growth.”
Business activities across the board resulted in a 15 per cent boost to revenue in the first quarter to Dh4.07bn. Malls and hospitality made up 39 per cent of that figure, though malls and hospitality operations had little change year-over-year.
First-quarter income for Emaar Malls moved 1.8 per cent to Dh539 million from Dh529m, with expansions in the works for Dubai Mall’s Fashion Avenue as well as new attractions along the Boulevard, Fountain Views and Zabeel areas.
The company’s income jumped 5 per cent to Dh756m in the hospitality sector, which includes commercial leasing and entertainment, partially thanks to the launch of two hotels including the Address Boulevard and Rove Healthcare City.
Emaar shares remained flat in Dubai trading on Sunday at Dh7.46. The shares are up by 18.4 per cent for the year to date.
Follow The National’s Business section on Twitter